In the last few years, midsize to very large companies are gearing up for a new channel to sell products directly to consumers(D2C) on their e-com platform. With the recent pandemic, brand owners have become alert and want to explore the option of launching & selling products on their site. Many companies already have distribution channels with e-com marketplace like Amazon, Flipkart, etc. Hence, the packaging is taken care of by a third party most of the time. Then, why a sudden demand for an e-com packaging solution for D2C channel?
Rise of E-COM packaging solutions for D2C channels:
D2C eliminates the barrier between the producer and the consumer
Gives the producer greater control over its brand, reputation, marketing, and sales tactics
The producer directly engages and gets better analytics & feedback for future growth and expansion of the digital market
Subscription model works brilliantly here
Packaging inventory can be controlled
E-com POSMs. With the third party, brands need to purchase space for new launches. Here, an individual brand can market its product in a better way with more space on their site.
As we interact more with clients and learn their specific requirements about this channel it becomes important for us as designers & engineers to gear up for such challenges. This channel of distribution has packaging challenges with respect to logistics simultaneously has an opportunity to create an unboxing experience for consumers.
With Brand owners and Designers gearing up for this new channel from my past projects, I observed a couple of key points that both Designers and Brand owners can keep in mind while exploring this new avenue.
Secondary packaging used as Shipping packaging
Designing secondary packaging which can be used for shipping as well. This will reduce the cost of additional shipper boxes and helps in maintaining easy inventory. This brings a hassle-free opening experience to consumers.
Also gives an opportunity to market the brand on the packaging. Different coatings can also be explored for waterproofing, hygiene, etc.
Invest in Structural Engineering
This is the most important aspect as it will reduce return/breakage percentage while transiting.
E-com packaging is not similar to retail packaging and needs better protection and locking.
Protective packaging resolves breakage percentage and locking helps in tamper-proofing packaging.
Optimize by modular structure elements
A brand owner & designer should evaluate the entire portfolio and find out ways to optimize the packaging by commonizing outer structure. A common outer packaging with different modular inserts can help maintain multiple product packaging inventories.
This brings modularity and flexibility in logistics. This also helps a brand with future launches with faster GTM and lesser investment in developing new packaging altogether.
Subscription model can explore Generative designs
D2C channel has cracked the subscription-based model as one of the most effective and consistent sale strategy.
This brings out opportunities in packaging for customization and special editions to break the monogamy.
Nokia and Nutella are few of the earlier players to explore this.
Eco-friendly materials
Brand owners have to be conscious of deciding on a material for their entire supply chain from primary to shipper packaging. Even fillers should be eco friendly.
Firstly, it helps in achieving the global impact of reducing the carbon footprint. Secondly, it helps consumers to dispose of waste easily.
Unboxing experience
Lastly, don't miss out on the opportunity of enhancing the consumer experience. The surprise element brings joy to consumers and retains long-lasting brand value.
Even a small note to consumers will go a long way to cheer them up. There are many ways to add experience which are economical and do not compromise with structural integrity.
A designer can help brand owners to visualize through quick mockups or 3D representation.
As we are exploring to bring the most effective model on the E-com platform, I hope these points will come in handy for both Brand owners and Designers.
If you have a query and want to further catch up with me to discuss options and opportunities, you can contact me at amitajain16@gmail.com
-Amita
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